Charles Ponzi, an Italian immigrant living in Boston in the early twentieth century, was said by his worshipful followers to have "discovered money." In fact, what he really discovered was a way to bilk the public out of millions of dollars by means of a financial pyramid scheme. There were pyramid schemes before Ponzi came along, but his was so outrageous that this type of scam has ever since borne his name. More >>>

Between 1897 and 1904, Cassie Chadwick scammed millions of dollars from Ohio banks by claiming to be the illegitimate daughter of Andrew Carnegie. The banks, believing they could charge Carnegie high interest rates, happily loaned her the money without asking too many questions.

Chadwick had used a simple ruse to lay the groundwork for her scam. She had asked a Cleveland lawyer to accompany her to Carnegie's house. He waited in the carriage while she went inside to conduct her business. On the way out, she "accidentally" dropped a promissory note for $2 million, signed by Carnegie. When the lawyer saw the note, she told him her secret — that she was Carnegie's daughter — but swore him to secrecy, confident he would immediately break his vow and tell every banker in Ohio, which he promptly did. In reality, the note was forged and the only business Chadwick had conducted inside Carnegie's house had been to chat with his maid.

Chadwick's con fell apart in 1904 when a bank demanded she repay a loan of $190,800. She couldn't repay, and finally bankers thought to ask Carnegie if she really was his daughter. Carnegie's reply: "I have never heard of Mrs. Chadwick."

Chadwick was sentenced to over ten years in prison, but died in jail after two and a half years.